We can help you in the search for and evaluate the ideal acquisition candidate. Once you’ve found the perfect target we will help you structure the best possible transaction.
The following steps, according to Cafa, can ensure a successful acquisition:
- Support the client in precisely defining the operational parameters of the acquisition target;
- Identify and prioritize potential targets;
- Prepare a short promotional document (the “Teaser”) describing your company and your targeted criteria;
- Approach all targets;
- Coordinate meetings between you and the targets;
- Prepare and execute confidentiality agreements with the targets;
- Collect and analyze the targets’ financial and other information;
- Assess the value of the targets and determine the probability of a successful acquisition;
- Prepare a financial model to evaluate investment return with a realistic capital structure;
- Negotiate and prepare a Letter of Interest based on the proposed capital structure;
- Coordinate acquisition financing (if required);
- Coordinate the due diligence process with your professional advisors;
- Act as an intermediary in negotiating deal terms and supervise drafting of legal documentation to ensure the “spirit of the deal” is respected.
Management (MBO) or Shareholder Buyout
Buyout opportunities can arise from an existing shareholder wanting to buyout his partner(s), management deciding to purchase the company from the existing shareholders, or, in some cases, the company’s shareholders themselves deciding to sell the company to their employees.
In a buyout scenario, Cafa can help as follows:
- Formulate the buyout strategy;
- Assess the value of the business;
- Prepare a financial model to illustrate realistic capital structures;
- Formalize the option to purchase or the letter of intent;
- Prepare a memorandum on the transaction;
- Negotiate the financing;
- Introduce legal, tax, environmental experts suiting your needs and objectives.